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Bad Car Lending

Where can you receive fast damaged car removal and quick money for a junk car? You have found the spot to sell a car for cash here in Summit, Portage and Medina Counties. Our junk car buyer is available to provide a quote for an old car, thus allowing you to sell a car for cash. We strive to increase the public view of the auto scrap & recycling business. It can be illegal, not too mention hazardous, to discharge scrap auto fluids to our water system, land and other resources.

In the June 18, 2016 edition of The Hawkeye and article titled ‘As subprime auto borrowers default, collection suits pile up’ by Walker Moskop explained the following: “In 2008, William Lesinski walked into a Car Credit City in STL and made an expensive decision. To buy his son a car, Lesinski put $1,750 down and drove off in a 2003 Ford Mustang. The loan for the car was $11,367, and it carried 29% annual interest over nearly (4) years. His son would make the payments, but the loan was in Lesinski’s name.

After paying the balance down to $10,000, his son, who stopped making insurance payments, wrecked it. In 2011, after more than $4K in interest had accrued, Car Credit City’s finance arm, General Credit Acceptance, sued Lesinski. With attorney fees, the court judgment came to over $15K After Lesinski fell behind on a payment plan, GCA began garnishing a portion of his paycheck.

The company has taken $22K+ of Lesinski’s wages. Because MO court judgments can carry the interest from the initial deal, little of those funds had gone toward principal. Lesinski thought the balance was near zero, he still owes nearly $13K. High-interest car lending for low-end borrowers with poor credit are nothing new. The US auto market has come back since the economic crisis, the sub-prime car loans has risen steadily. Lenders use the courts to recoup losses on loans to poor borrowers, the STL Post-Dispatch viewed court data from suits involving (3) finance companies. Since 2010, the firms alone have filed more than 15,000 suits against in local courts. The vast majority of cases end in a judgment against the borrower, after which the lender seeks to garnish wages. Many other subprime lenders file many of suits each year. Large debt buying firms along with banks & finance companies, file the suits each year for debts, including used car loans, but the origin of debt is impossible to identify without viewing individual court filings.

Among companies dealing in high-interest car loans, few match the number of suits filed by Midwest Acceptance, Instacredit Automart and Car Credit City. Their contracts typically carry annual interest of over 24% with terms ranging from 36-60 months. There are no interest rate caps for auto installment loans in MO or IL. Unlike competitors who bundle & sell their debt elsewhere, the company said, it keeps its own debt, and thus files suits as needed. As US auto sales have heightened, investors have been pumping money into subprime loans. Many lenders recently loosened their credit standards and raised interest percentages to account for more risk. Others weren’t aware of what was in the contract and didn’t understand the terms Rob Swearingen, an attorney, represents those who have been sued by subprime lenders. For borrowers who pay on time, a 29% interest rate means that in the 4-year loan, they repay 70% more than they borrowed. Swearingen says that this is away people go broke or stay poor. Most experts feel increased sub-prime vehicle lending is different than the real estate bubble, and a surge in defaults won’t take down the economy. But for some borrowers who can’t make the payments, defaulting can be crippling.” The full article is available here.

Scrapping junk cars in Ohio

Same-day and next-day damaged car removal is now available for cars in any condition. To sell a car for cash you will need to have the vehicle title and a matching ID. Receiving money for a junk car is a simple and easy process. Simply obtain a quote for an old car and you can have money for a junk car today. Auto recycling reduces the pollution created with manufacturing